Especially in metropolitan areas and large cities, the search for a suitable property is often not the biggest problem. Real estate can be even more expensive in a few years than it is today. Since financing is offered by numerous banks, it is not always easy to find a cheap loan to buy a home. We help you with our real estate loan calculator to quickly find a cheap loan. If this can not be paid completely out of pocket, you can currently get a loan on favorable terms.
For real estate loans the most common question: how much can I even allow myself?
The search for a suitable property is often not the greatest detail, especially in metropolitan areas and large cities. Real estate loans are sometimes not the optimal answer – especially when it comes to sums in the low six- or five-fold percentage range, because a classic installment loan is sometimes better to procure and better use.
With real estate loans, the question arises: how much can I even allow myself?
Even though the amount of the monthly burdens has been determined in detail, it is not clear whether the banks will participate in the refinancing. In the case of a real estate loan, we first weigh the credit risk on the basis of three questions:
To what extent will the capital be contributed?
If the borrower stops serving the loan, the economic loss should be as low as possible. However, because the purchase of a property is associated with one-time expenses such as notary fees and land transfer tax, the house bank does not want to bear the cost risk.
Real Estate Loans = Equity!
Anyone who already finds out that the chance of getting a real estate loan is low should consider: is there a favorable installment? The total amount is lower here than for a property-specific loan, but can be taken into account if the financing is provided by several people.
A favorable and long-term installment loan can certainly pay off here. Unlike real estate loans, the house bank does not need capital here! Finally, the house bank wants to know something about a real estate loan: Which property is affected? If the borrower no longer services the loan (ie stops paying installments), the principal bank will endeavor to sell the property with the highest possible return.
However, this is only possible if the property is sufficient for potential customers. For example, a classic loan can certainly pay off for the borrower if the property is unusual or even slightly smaller. Try it for free and call the Credit Calculator!